CommSec argues for more consistent margin lending
Australia's largest retail broker CommSec has added its voice to calls for greater regulation of the margin lending sector. Head of margin lending at CommSec, Matt Comyn, said that increased scrutiny to give the public assurance would benefit the industry in the long term. Mr Comyn said that the timing of margin calls should be standardised as CommSec informs clients between 4pm and 6pm on the day that the call is triggered, giving them until 2pm the following day to settle their position, while other lenders don't let clients know until the following morning which gives them much less time to respond. According to Mr Comyn, CommSec already has comprehensive disclosure and client suitability test to protect consumers.
Source: The Australian Financial Review